What does credit score say about you?

Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 11:32 am

Winchester wrote:
Saz wrote:Still trying to figure out what to do with this extra 50k I took out in student loans. Really need Hillary to drop the rates before the end of 2017 otherwise I could be wandering into losing territory lol


bitcoin. :p


Hey I'm still up on Bitcoin but yea the whole crypto thing didn't pan out as expected. All of them except bitcoin basically went to zero. At my peak worth 5k more than what i paid now its just around 1k :( live and learn
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 11:34 am

Spider wrote:
Notice, spider did not provide any quote where i said you have to pay interest to benefit from revolving credit. Because I never said that. And in fact, I easily predicted he wouldn't provide a quote.


Actually, I've already provided it twice. This will be number 3.

Spider:
No, Saz, that is incorrect lol.

You don't have to carry a balance. As in, pay interest monthly on an outstanding amount. If you use revolving credit, but pay it off before the interest accrues, you are still "demonstrating active revolving credit management".


Saz:
No, you will not. The only possible way to do this without interest would be to have 0% APR cards continuously, but that would obviously bring down your age of credit since those sort of offers are only for new cardholders. You cannot use the card and then pay it off each month before the interest hits and still be seen to be demonstrating active revolving management over a significant period. It must go for more than one month and I know this because i regularly use my cards and pay them off each month before the interest and I do not get the 20 point bump and still get the continuous warning.


Some of the best AM forum fun in months. :))


So just to confirm, I didn't say that quote. You are just an illiterate who can't read. Glad we could settle this
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 11:42 am

Inzomniac wrote:
Saz wrote:Don't listen to him man, he is full of shit. Think about it. If all they cared about was using credit responsibly, why would having 0% utilisation (or having a card that you always have paid off on time but simply haven't used recently) decrease your score? There is nothing irrisponsible about that...and yet credit agencies want you to use the card at least some of the time...or use credit you may not actually want or need to use.

You saw it right the first time, trust your instincts on this. Don't listen to spider, the guy quote Bank of America as if they haven't f**k over million of responsible Americans like you.

Well, the other way they get you is more and more services require the use of a credit card [many businesses are using holds for a lot of money on the credit cards as an uncertainty to having to sue a person for losses that can occur in the natural course of said business, and abusing those cases as well]. So, even the people who want to opt out of the game often don't have much of a choice in many cases. A payment history doesn't demonstrate that you are going make your future payments. And a lack of a payment history doesn't demonstrate that you won't make your future payments. Banks honestly just want you to pay them in order to take your money while they turn around and rake in fist over dollar on the credit card interest rate they charge people. And then also the killings they make on mortgages and other types of loans. Other than the first two categories of DEADBEAT [300-549] and UNDESIRED RISK [550-649], credit scores have ZERO to do with the truth about how intelligent your financial decisions are and what level of risk you represent.


Yea the hold thing is ridiculous but to be fair with credit cards you can do the same to businesses. I put shit on my card and dispute it all the time and usually get my money back. Amex is the best for this.

You are right, past performance does not guarantee future outcomes. But the interesting this is issuers actually could do a much much better job of analysis credit risk, it's just they are prohibited from taking certain things into your account. For example, your income is not a component of your credit score and despite issuers having access to this info, they really don't include it in the calculation. If banks wanted to they could take it a step further and start analysis your education, where you live, your parents credit, your purchases, etc and put together a much much more accurate assessment of your credit risk. But the line has to be drawn somewhere...imagine if they pulled your google search history and if you google to much about bankruptcy your credit risk goes up. Honestly though, the credit bureaus f**k up regularly and can't even manage to put together your score properly based on the limited info they can use, so it's probably best they can't start analysing even more stuff.

Agreed on the part about there being little to no difference between say a 760 and a 780 credit score. You can tell who is riskier if one person has a 400 and the other is 800, but at the margins it's really meaningless. This is why I wouldn't worry that much about your score, as long as it's around 750. After that the amount of credit you can get and the rates you get it at depends more on market conditions, income, your lender, etc. Like I said open up an account at a credit union it will do you a world of good and they are generally a bit more nuanced when lending as opposed to major issuers who just look at your credit score.
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 6:14 pm

Saz wrote:
Spider wrote:
Notice, spider did not provide any quote where i said you have to pay interest to benefit from revolving credit. Because I never said that. And in fact, I easily predicted he wouldn't provide a quote.


Actually, I've already provided it twice. This will be number 3.

Spider:
No, Saz, that is incorrect lol.

You don't have to carry a balance. As in, pay interest monthly on an outstanding amount. If you use revolving credit, but pay it off before the interest accrues, you are still "demonstrating active revolving credit management".


Saz:
No, you will not. The only possible way to do this without interest would be to have 0% APR cards continuously, but that would obviously bring down your age of credit since those sort of offers are only for new cardholders. You cannot use the card and then pay it off each month before the interest hits and still be seen to be demonstrating active revolving management over a significant period. It must go for more than one month and I know this because i regularly use my cards and pay them off each month before the interest and I do not get the 20 point bump and still get the continuous warning.


Some of the best AM forum fun in months. :))


So just to confirm, I didn't say that quote. You are just an illiterate who can't read. Glad we could settle this


You said it. I copy pasted it from this very thread. :) Its sitting there right now. Read it.
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 6:20 pm

Inzomniac wrote:
Saz wrote:Don't listen to him man, he is full of shit. Think about it. If all they cared about was using credit responsibly, why would having 0% utilisation (or having a card that you always have paid off on time but simply haven't used recently) decrease your score? There is nothing irrisponsible about that...and yet credit agencies want you to use the card at least some of the time...or use credit you may not actually want or need to use.

You saw it right the first time, trust your instincts on this. Don't listen to spider, the guy quote Bank of America as if they haven't f**k over million of responsible Americans like you.

Well, the other way they get you is more and more services require the use of a credit card [many businesses are using holds for a lot of money on the credit cards as an uncertainty to having to sue a person for losses that can occur in the natural course of said business, and abusing those cases as well]. So, even the people who want to opt out of the game often don't have much of a choice in many cases. A payment history doesn't demonstrate that you are going make your future payments. And a lack of a payment history doesn't demonstrate that you won't make your future payments. Banks honestly just want you to pay them in order to take your money while they turn around and rake in fist over dollar on the credit card interest rate they charge people. And then also the killings they make on mortgages and other types of loans. Other than the first two categories of DEADBEAT [300-549] and UNDESIRED RISK [550-649], credit scores have ZERO to do with the truth about how intelligent your financial decisions are and what level of risk you represent.


It is indeed true that its not possible to predict the future. All they can do is generate and refine the best statistical predictions they can. Which is the point of all of this.

And actually, the scores are very relevant to level of risk. This is trillions of dollars they're playing with, and they are not dicking around. The goal is to make piles of money, and so they are going to run right up against the bleeding edge of risk they can tolerate in order to maximize their returns. If it had "ZERO" correlation with predicting acceptable risk, they wouldn't be betting those trillions on it.

I mean, would you? Would you extend the same loan and rate to a guy with a 650 as you would to a guy with an 825? In order to have a 650, the first guy would need to either have little credit history, or have something otherwise negative in his credit history. The second guy probably has a deeper, broader, history without negatives. So why would you claim the scores "have ZERO to do with the truth about how intelligent your financial decisions are and what level of risk you represent"? (Bearing in mind you are stipulating scores of 650 or higher)

Just trying to work through this logic, since of course even minor issues can have immediate and lasting effects on scores.
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